Global crisis will not affect Saudi economy: expert

Dubai, Nov 4 (IANS) Saudi banks will not be affected by the problems facing American, European and other Asian banks, a top economic expert said Tuesday.Mohammed Bin Ibrahim Al-Suheibani, acting dean of faculty, economy and administrative sciences at the Riyadh-based Imam Mohammed Bin Saud Islamic University, said that loans from Saudi banks were extended to companies, which were linked with governmental contracts and governmental employees, and hence these loans would “surely be repaid”.

In a statement to the official Saudi Press Agency (SPA), Al-Suheibani said the measures taken by the government and statements from officials concerned would weaken any psychological impact of the global financial crisis on the national economy.

He went on to add that the global economic crisis might have a positive impact on the Saudi economy due to the decline of the prices of the commodities caused by the international economic stagnancy, and pointed out that stability of prices is one of the major goals of the Saudi economic policy.

He said the Saudi economy would grow, and “this growth may positively contribute to realisation of several goals, including balance in regional development, improvement of the payments balance at the long term as well as making job opportunities available”.

He said the upcoming economic cities in that Gulf nation would continue to attract foreign investment.